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Role of financial manager

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Businesses are now providing stocks to managers for increased financial performance using annual return on equity. How would this decrease the agency problem between managers and shareholders as a whole? Why could directors be more efficient than shareholders at increasing managerial performance and changing their incentives?

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Role of financial manager: MAXIMIZING Stockholder's value

The finance manager stands between the firm's operations and the financial markets where investors hold the financial asset issued by the firm. The financial manager's role starts from flow of cash from investors to the firm and back to investor again.
Financial manager is a person responsible for a significant investment and financing decision. The manager as a stock holder's agent is instructed to find and invest in all positive-NPV projects open to the firm.

COMPARISION: financial manager's viewpoint with the viewpoint of an employee or stockholder with regard ...

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